Demystifying Chinese Investment in Australian Agribusiness

Demystifying Chinese Investment Australian Agribusiness

Despite perceptions that Chinese investors are buying up large areas of Australian farmland, new research has found that China is not yet a major agricultural investor in Australia, and in fact, may own less than 1 percent of Australian farmland.

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The latest report into Chinese direct investment by KPMG and The University of Sydney’s China Studies Centre – Demystifying Chinese Investment in Australian Agribusiness – provides the facts on the current scale and composition of Chinese large-scale commercial investment into the Australian agricultural and agribusiness sectors.

It analyses the realities facing China's food demand patterns and outlines practical initiatives Australian companies should take to attract more investment.

Key insights

Chinese investors may own less than 1 percent of Australian farmland.

Chinese investment into Australia's agricultural sector commenced only quite recently and has been relatively small – by total value and transaction volume.

While government policy is very important to shape the right platform, real change will come from our agribusiness industry and broader rural communities taking a proactive and pragmatic view on changing mindsets, building stronger relationships and making full use of Australia’s competitive advantages.